Tokenization & DeFi

Flash Loan

A flash loan is an uncollateralized loan offered by DeFi platforms that must be borrowed and repaid within a single blockchain transaction. Used primarily by developers and traders for arbitrage, refinancing, or liquidation strategies, flash loans leverage smart contracts to ensure instant execution. If the loan isn’t repaid in the same transaction, it’s automatically reversed. They’re powerful tools in decentralized finance but also pose risks if exploited maliciously, making secure coding practices crucial.

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